Essays on Microeconomics

Article summary

The article title is “Microeconomics: Factors of Consumer Decision-Making” by Marc Davis. The article focuses on the choices consumer make before deciding on buying a product or service. Most economists agree that price is the major factor that affects consumer’s decision-making process, but Davis argues that price might not be the only deciding factor. In addition, economics argue that all factors remaining constant, the price of a product is inversely proportional to its demand. Davis focused on the opportunity cost and elasticity as other factors that influence consumer choice and demand for goods or services. Price changes, and Continue reading...

Economics is a subject that is used in different phases of life, and it is one of the most important subjects. The basic definition of economics stride upon the fact that how to earn the money and how to consume it accordingly. Authors identified and described these particular concepts under the umbrella of two important things, which particularly are microeconomics and macroeconomics. Microeconomics is a form of economics that relates to the branch of economics of individuals. Macroeconomics is the second thing which analyzes the economics related to the country as a whole or mass marketing.
The concepts of Continue reading...

There are numerous examples where microeconomics is applicable to us in our everyday life. This paper will focus on some of the examples I encountered while I was a teen ager and also how these concepts have helped me to analyze every situation from an economist perspective.
Starting off with a simple example, as teenager I always loved McDonalds and would spend a lot of money buying shakes, burgers from an outlet. At that time I had no idea about the concept of utility which is a fundamental concept in microeconomics. Every time I consumed a burger I really Continue reading...

Seattle’s Bold Minimum Wage Experiment

The study of microeconomics encompasses an assortment of units of the economy, how they function and how they reach their symmetry. In this analysis, the paper seeks to use the main theories covered under microeconomics in discussing the Seattle Minimum Wage.
The city of Seattle sought to raise its minimum wage to $15 an hour; a development that some may consider a bold move accompanied with a sense of utopia. In essence, the experiment is an untested move whose effects are unknown. Is it, therefore, prudent to consider a matter reliable if it has no tested truth? Certainly not, Continue reading...

Introduction

Microeconomics can be defined as the analysis of the decisions made by individuals and groups, the factors that affect those decisions, and how those decisions affect others (Moffatt, n.pag.). Unlike macroeconomics that deals with aggregate level activities, microeconomic deals with individual, household and firm level economic activities. It helps in understanding the dynamics of an industry and microeconomic impact of industries. The industry that has been chosen for this study is automotive industry for two reasons. First, automobile industry significantly contributes to global economy. Second, the industry is dynamic and undergoing a lot of changes in the recent past.
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Introduction

Microeconomics deals with individual firms and units’ decision making in an economy while macroeconomics addresses the greater national aspects. In that respect, this analysis seeks to demonstrate the functioning of both microeconomics as well as macroeconomics concepts by analyzing two current issues in the US addressed in two articles or the news and touching on such concepts. This is achieved by the analysis first explaining the problem as presented in the article and its possible causes. The analysis further explains the significance of the issue and its possible cause of economic fluctuations as well as its effect including benefits Continue reading...

Economics deals with scientific study of how people allocate and use the scarce resources to meet their unlimited wants. It aims at putting to better use the resources which are always scarce. Scarcity and choice prompts individuals to forego some of their needs so as to meet the most urgent ones first. Therefore, there is an alternative a person must forego. The price of this alternative is the opportunity cost. Scarcity and choice are all about weighing benefits of alternatives that a person has. For example, a consumer may choose to build a residential house instead of buying a Continue reading...

Abstract

Economics is an academic discipline that deals with scarce resource planning. Macroeconomic and microeconomics are two fields of economics, dealing with decision making at aggregate level in the former and individual level in the latter. Microeconomics discusses individual preferences and macroeconomics considers aggregate scenarios. An analysis of self-decisions reveals that, in spite of the difference, these two fields are closely linked and interconnected. The microeconomic decisions taken by individuals impact macroeconomic variables, and macroeconomic phenomena impact individual decisions significantly.

Keywords: Macroeconomics, microeconomics, economics, consumer preference, corporate tax reduction

Introduction

Adam Smith stated that economics deals with the nature and causes of a nation’s Continue reading...

Introduction

Markets across the world have different characteristics that define their viability and suitability to participate in the global economy. These markets are identified by their most prominent characteristics that enable smooth transactions and flow of business. Markets can also be analyzed for their attractiveness to certain customers, companies or organization depending on the set of characteristics they exhibit. The more characteristics a market exhibits, the more attractive it is. The following are the most significant characteristics of markets that distinguish them as viable and suitable to buyers and sellers who wish to transact their business in Continue reading...

Microeconomics is a branch of economics that helps an individual to understand how free markets work .This is by making economic decisions that will help to maximize profit by using the limited recourses appropriately. Microeconomic evaluates the decisions that will help to determine the price of the product. Through the prices, an individual firm and household will be able to know the quantity of goods and services which are demanded and supplied. Microeconomics also helps the government in the imposition of the tax that is used in development of the country. Microeconomics examines the market failure and look for Continue reading...

Economics:

Economics is the study of how the little available resources can be used to satisfy wants that are many, since wants are many on the other hand resources available to satisfy them are limited in supply, there is need for one to choose among the wants and make a decision of what the few resources to satisfy first leaving the rest. In economics, factor like inflation and deflation, marker prices, interest rates, exchange rates in the market are studied. Economics has been divided into two major subdivision; microeconomics and macroeconomics.
The word microeconomics is a combination Continue reading...

Introduction

In last few years, the randomized program evaluation has become the gold basis for evaluating the development programs and also the bread and butter of many development economists.  The evaluations sometimes uncover the valuable new information, but are contentious, and can also be prohibitively expensive to implement, for small NGO’s. Appreciating how the microfinance affects clients is not straightforward for the reason that there are several possible explanations for why, say, a borrower is doing well as compared to her non-borrowing peers. Continue reading...

The key to success of any project or rather business venture is efficient resource management. Efficient resource management involves many aspects but the major one is resource allocation. It is important to note that economic resources are always limited and for this reason, it is very crucial to design mechanisms on how best to use of these limited resources. Resource allocation refers to the way resources are to be utilized in any given organization to obtain maximum or rather optimum output. Baumol & Blinder, (2008) asserts that, according to the classical economists, scarce resources can be efficiently allocated to alternative users through a competitive mechanism.

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Related Learning Experience

Throughout my time in the workforce, I have been able to amass a great deal of experience in directly working with and becoming familiar with a variety of elements of microeconomics. This experience has been quite diverse considering the fact that the number of employers within my work history is rather limited. Similar to many young adults starting out, I began my work history with a job at a prominent fast food restaurant, which represents my first major learning experience in important microeconomic concepts such as product markets, factor markets, and the fundamental principles of economics. These concepts were Continue reading...

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Considering a new business that deals in construction and selling of real estates, there are many decisions to make during and before sales. Microeconomic analysis is a technique used to determine how the actions and decisions of a business or organization affect the country’s economy. Microeconomic analysis describes how individuals make financial decisions depending on the income they earn and the price of the products they consume. The study of microeconomics covers the levels of production and pricing. However, there are two different methods used in the microeconomic analysis process ( Continue reading...

Abstract

The purpose of this paper is to identify how the healthcare system has notable affects on social and functioning bodies dependent on the healthcare system. Healthcare is also affected by decisions from nationwide governing bodies distribute financial and medical aid where individual people can make their own decisions and play out the key microeconomic concepts to achieve the most beneficial medical plans. The healthcare system in North America constantly experiences changes to its healthcare plan regardless how protocols differ between the U.S. and Canada. The decisions implemented by individual members act as the instigators to Continue reading...

Introduction

Economic consequences are extremely essential for the sake of an economy, as it is the only thing through which the power of economics of a country will get appreciation and upper hand in the market (Angermuller, Maingueneau & Wodak, 2014). Escalating stock market recognition, increasing economic power, Gross Domestic Product and Per Capita Income are some of the important aspects that found interactive and effective in the entire field of economics and management (Angermuller, Maingueneau & Wodak, 2014).
In terms of significance, the subject of economics has its diversification in different themes that will be considered accordingly in the picture. The Continue reading...

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Nike – the winged Goddess of Victory in the battlefield is the symbolism of inspiration for every athlete to perform better and higher. It is the inspiration for the common man to meet his innate desire for athleticism and physical fitness. Nike’s brand promise of attending to every customer’s cravings desires and demands are reciprocated by the customer’s willingness to purchase Nike products. The incredible strategy of Nike is to have the best of athletes endorsing their shoes. It is a common Continue reading...

The microeconomic theory

The identified microeconomic theory was the consumer demand theory. The consumer demand theory falls under the branch of economics that deals with the study of consumer behaviors applying to decisions related to purchase of goods and services in the market. The theory provides a deep insight into understanding market demand and forms the cornerstone of the modern microeconomics (Salvatore, 2002).

Properties and characteristics of the theory

The consumer demand theory generally analyzes consumer behavior in terms of market purchases that are based on satisfaction of needs and wants achieved after consuming a product. The main property of the theory is utility maximization. Economists are most Continue reading...

Introduction

Microeconomics is very essential because people make choices whose consequences are felt by the individual and the general society. Incentives matter and they consequently affect t choices. Rational choice and expectations guides the decision making process in any economy. The historical empirical and analytical evidence against the hypotheses studied in microeconomics is prodigious.
Recession is a period in which the economic activities in a country are contracted. During such periods, employment, GDP, business profits, capacity utilization, household income, investment spending and inflation falls while on the other hand unemployment and insolvency upsurge (Agarwal et al., 2005). Generally, recession results Continue reading...

Introduction

Economic perspective and economic laws are some of the important ones that associated with different economies of the world accordingly (Casson, 1990). As per the sayings of Alfred Marshall and Adam Smith, the law of economics revolves specifically around the level of economic perspective of consuming and utilizing the money. In fact the core sayings of these individuals are in the favor of effectiveness and shows that economies should utilize their facts and the consumption and savings values in a perfect and organized manner (Casson, 2006).
There are number of authors of economics which has had presented different ideas Continue reading...

Microeconomics deals with the economics decisions made at a micro, level. It is the analysis of decisions made by individuals or a group of individuals. Microeconomics also analyses the factors that affect the decisions made by the individuals. Cost and benefit considerations are taken into account while making the decisions. Costs can be either financial or opportunity costs, which is the next best alternative to an action. Microeconomics is the efficient apportionment of scarce resources between alternative uses. It also involves price determination through to gain maximum utility and maximum profit. The perspective of microeconomics is the competitive demand Continue reading...

Microeconomics is a subtopic of economics that dwells on the behavior of individuals as they make decisions in light of scarce resources. The market activity includes selling and buying goods and services. Microeconomics elaborates decisions made by individuals due to supply and demand in the market to determine the quantity demanded, price of good or service, and the quantity supplied. Conversely, microeconomics entails all the economic activities that affect inflation, unemployment, inflation and growth in the country. Microeconomics highlights the national policies that affect the economy such as the change of the tax levels.
The branch of economics strives Continue reading...

Microeconomic Analysis of Each Government Intervention

- US government intervention through tariffs
The US government has opted to be actively controlling their country’s balance of payments through the use of tariffs aiming at discouraging importation of Chinese solar panels. This intervention has been established with a common goal to protect the US local industry and the manufactures of solar panels and the related products. As a result, the US government has levied custom duties on the Chinese products ranging from 2.9% to 4.73%.
Although, this intervention comes with many advantages, particularly in protecting the domestic market and increasing government revenue, microeconomic analysis shows that Continue reading...

Abstract

This paper is based on an article from The Economist published on June 1st, 2013. In this paper, I will analyze the economic policy against the credit markets fluctuations in the US and try to follow the traces of the failures in this policies due to the reactions of the martkets to this policies. The Fed and the Government implement some macro policies to stable the markets to ensure the growth rate in the US while keeping other macroeconomic variables such as unemployment, inflation, stock exchange markets, foreign exchange rates. However, people’s reaction to these macro policies sometimes Continue reading...

Given that the new company is now run as a monopoly, how will this benefit the stakeholders involved, such as the government, businesses, and consumers?

In this scenario, two shrewd attorneys with financial influence exploited a condition in a liberal market to pool a previously fruitful industry.  This made a situation in that they have no competition and they are prepared to vend!   The administration consulting company they employed will coordinate the publicising, the lay-off of workers, and the fresh approach of operating. Subsequent to hours of investigation, I have established there are several views for and against this Continue reading...

Introduction

If it is ask about one single field that has recognition with almost every walk of life, then the name of Economics will be reflecting on the screen. After Adam Smith and Alfred Marshall, who directed the most important definition of the term economics, there are numerous authors who found a clear relationship among the economic based functions, and its core impact over the economic consequences of an economy (Banerjee and Duflo, p.45).
Earning and consuming the money in a best possible manner and with a sigh of effectiveness is the most important aspect of economics, in fact the Continue reading...

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Literature Review

Professionals and scholars in the field of marketing and management have since become fascinated with the idea of co-creation. Zwick et al. (2008, pp. 163-196) emphasized the importance of co-creation with regard to its political impact in the cultural, social and economic realms, taking into consideration the notion of Michel Foucault on the government and labor-and-value theories advocated by neo-Marxism. Contrary to the traditional perception of consumers as passive entities in any given market, co-creation brings to light their capabilities in terms of practicing their power to interact with firms on resource combination Continue reading...

NOBODY STATE UNIVERSITY ECONOMIC ADVISORY

The Nobody State University as described faces a critical financial challenge that requires a careful analysis. The decision taken shall have a critical impact on the financial aspects of the university. This is an advisory paper using the best micro-economic approaches available.
If the Nobody State University increases the tuition fee, the following scenarios may occur. According to Robert and Frank (2008), an increase in price leads to a corresponding decrease in demand. In this case, the raising of the tuition fee may not necessary lead to an increase in revenue. It can increase, remain the same or go Continue reading...

Scenario II:

Both Microeconomics and Macroeconomics are two branches of economics which deal with two entirely different stream of economic behaviors. Although their concepts are entirely dfferent but they both are highly interdepedendent on each other.
Microeconomics is the study of individual people and individual businessess and analysis of their decison making citing scarce available resources and also relating to pricing of goods and services. In particular, microeconomics focuses on the concepts of demand and supply and any other force that determines the price level in the economy. For Example, any rise or fall in price of a commodity in accordance Continue reading...

Abstract

According to the United States Census Bureau under the Department of Commerce (2013), the United States of America has a population of 313 million (as of 2012 census) that needs to move from one place to another and requires goods and services to be moved as well for their many needs. Twenty three percent (23%) of this population is above eighteen (18) years of age and can legally drive a motor vehicle across the United States’ 3,531,905 square miles of land .
Transportation is made up of three very distinct components, transportation infrastructure, vehicles and transportation operations. Infrastructure Continue reading...

Following the American Psychological Association’s Guidelines

Microeconomics and Macroeconomics Concepts
GoodLife’ supply curve given in the first page is a microeconomic concept. It shows the quantities can be supplied for the given prices, or in another word, this company’s supply curve exhibits how the company reacts to the prices by changing the quantity supplied. When the company rents out all the apartment, the company ask a price level of 1500 $ for an apartment.
Price ceiling policy is a macroeconomic concept, because government makes a policy decision and this decision affects all market players in economy. A price ceiling means an excessive demand in market, Continue reading...

Introduction

This article “Mitt Romney's green-jobs criticism carries risks” by Nicholas Riccardi of the Yahoo News discusses the effects of “green jobs.” Congressman Mitt Romney criticizes President Obama’s “obsession” with “green jobs.” Basically, green jobs should lower the use of resources and/or ecological impact. Green jobs must also create jobs. In simple terms, it must create economic efficiency.
The economic article will be explained in terms of the principal microeconomic concept such as the cost-benefit principle, particularly through opportunity costs. Microeconomics’ basic tenet says that there is always a tradeoff between capital, labor and natural resources (like energy in Continue reading...

Abstract:

The article investigates how human capital investment affects distribution of wealth in short as well as well long term in various economies. The article reflect current credit market pattern and individual investment in gaining competencies and knowledge to perform labor which impact wealth distribution. The article further investigates per capita output differences in various countries and also examines differences in various countries economic to adjust variation in earnings distribution and wealth.

Introduction:

The Article “Income Distribution and Microeconomics” by Oded Galor and Joseph Zeira provides a detailed explanation on how distribution of wealth influence economic activities in short term and Continue reading...

Short Term Benefits

1. Microeconomics and macroeconomics both utilize different scales for managing the economy. Microeconomics deals with how everyday companies and families interact with the market to set a balance between the demand and supply price. Macro economics on the other hand deals with the bigger picture of economic activities. It includes the components of taxes, unemployment, economic growth and inflation. Macroeconomics deals with laying policies in which the micro system functions. The areas of concern in this branch include management of the numerous individual economic units which can be very complicated and contradictory considering the varied interest of each microeconomic Continue reading...

Economics

Economics is a field of study that deals with analyzing the factors involved in the production, distribution and consumption of goods and services. Economics strives to explain how economies of different countries function and the interaction between different agents operating in those economies. Economics as a field of study finds application in different spheres of the society including businesses, governments, health, education, politics and other social institutions. There are two major categories in this field and they include microeconomics and macro economics.

Microeconomics and Macroeconomics

Micro economics is the branch of economics that deals Continue reading...

Introduction

In every market system, two key players are involved; buyers and sellers. Buyers purchase products at their willingness and ability while the seller supplies the products and services to the market at their willing price and ability to the market. (Kumra, 2007)
The market system is defined by the forces of demand and supply. Demand is the capability of a consumer to purchase products at the prevailing price within a given period .Supply is the ability and willingness of a seller to produce and supply products and services to the market at the prevailing price at a given period. Continue reading...

Following the American Psychological Association’s Guidelines

Answers to the Questions
1.The city of Santa Utopia is plagued by ever increasing rent. Worrying that seniors may not be able to afford their rent payments, a city supervisor proposes imposing rent controls. Using supply and demand framework, diagram the effects of rent controls. Will the Santa Utopia rental market face excess demand or excess supply?
In Utopia, the equilibrium price is at Pe and it has been very high for citizens. Therefore, a supervisor suggests applying rent control. If the city management applies that suggestion, the price level has to be kept under the equilibrium price. In Continue reading...

Chapter-1

Introduction
When it is defined about economics, then it will be definite about the inflation and economic growth (Banerjee and Duflo, 2011). Economies are always in comparison with other economies in terms of enhancing their economic growth and minimizing the level of unemployment rate accordingly. Earning the money and consuming it in a perfect and best possible manner is a basic definition of economics, and economics are utilizing it in a better way. Apart from earning and consuming the money at a better place, economic development and economic management are some of the important aspects that associated with the Continue reading...

The world has been migrating from the analogue era to the digital era for the last couple of years. In the digital era, electronics are very essential components and hence their demand has increased. The number of electronics manufacturers has consistently increased over the years, and the level of production has surpassed the growing demand. Lenovo has been affected by the situation and therefore the company needs to take keen note on the demand and supply concepts.

Price determination using demand and supply curves

The price of any product should be derived from the demand and supply curves. The place at which the two curves intersect Continue reading...